Analysts at Oddo BHF have started coverage on Sunrise Communications, assigning an Outperform rating to the stock. They have set a price target of CHF 45 for SNRE, indicating confidence in its potential for growth. This move suggests that Oddo BHF sees strong prospects for the company, encouraging investors to consider this opportunity.
SNRE Key Business Developments
Release Date: May 19, 2025
- Revenue: Down by 3.3%, impacted by lower hardware sales and right pricing activities.
- EBITDA: Increased by 0.4% year on year.
- Adjusted EBITDA less CapEx: Slight decline due to higher CapEx.
- Free Cash Flow: Adjusted free cash flow at CHF 117 million, lower than prior year due to CapEx and supplier payment phasings.
- CapEx: Higher due to front-loading of network and CPE investments, expected to normalize throughout the year.
- Dividend Guidance: Expected to grow by 2.7% for 2025, with a proposed dividend of CHF 3.42 per Class A share.
- Mobile Postpaid Net Additions: 12,000 net additions.
- Internet Net Additions: 5,000 net additions.
- Mobile ARPU: Reduced to CHF 28.6, a decline of CHF 1.1 year on year.
- Fixed ARPU: Declined to CHF 58, impacted by right pricing efforts and brand mix.
- 5G Standalone Network: Launched with 99.5% coverage in Switzerland.
- ADS Delisting: 82% of Class A and 98% of Class B shares converted, with delisting planned for mid-August 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sunrise Communications AG (SNRE, Financial) reported continued customer growth in Q1 2025, with new technical and product launches.
- The company launched a new product portfolio, Swiss Connect, focusing on customer loyalty and offering more roaming services.
- Sunrise Communications AG (SNRE) successfully launched its 5G stand-alone technology, covering 99.5% of Switzerland.
- The company confirmed its full-year guidance, including a 2.7% increase in dividend per share for 2025.
- Sunrise Communications AG (SNRE) demonstrated technology leadership by being the first in Switzerland to launch a 5G stand-alone network.
Negative Points
- Revenues declined by 3.3% in Q1 2025, impacted by lower hardware sales and increased replacement cycles.
- The company experienced softer trading in Q1 due to reduced promotional activities and price rises.
- Adjusted free cash flow was lower than the previous year, driven by higher CapEx and supplier payment phasings.
- The company expects softer trading to continue in Q2, impacting net additions.
- Non-subscription revenue, including handsets and hardware, saw a decline, affecting overall revenue performance.
